Medtronic Bundles Vascular, Cardiac Surgery Units

Medtronic Inc. is combining its vascular and cardiac surgery businesses to form a new unit.

The Fridley-based medical device company said Wednesday it is consolidating a total of four divisions into the new business unit, titled CardioVascular. The new unit’s revenue for this year is projected to be $1.9 billion.

The combining of businesses may lead to a “modest” reduction in jobs, a company spokesman said.

The combined units will focus on devices that treat coronary artery, vascular and structural heart diseases. Revenue-wise, the unit will be among Medtronic’s top three businesses, a spokesman said.

The four divisions are not expected to relocate as a result of the combination, Medtronic (NYSE: MDT) said in a press statement. However, the divisions will “leverage common business processes and specific functional infrastructure,” the company said.

“This new business unit also provides Medtronic the opportunity for more growth, as we translate certain efficiencies gained by this combination into new investments in research, clinical studies and technology,” said William Hawkins, company president and chief operating officer, in a press statement.

Scott Ward, who is currently senior vice president of Medtronic’s vascular unit, will lead the new combined business.

Shares of Medtronic were up 50 cents, or 1 percent, to $49.97 per share in late afternoon trading.

SOURCE: ST. PAUL BUSINESS JOURNAL